Top 10 Reasons Real Estate Investors Fail to Take Action

This article is being reposted from creonline.comand originally appeared on September 18, 2012.fear of failure

One of the biggest fears faced by real estate investors is the fear of failure.

I’ve seen a lot of novice real estate investors fail. Most of them fail to get started and never get out of the gate because they allow fear to stop them from trying. This is perfectly normal. But now is the time to stop worrying and get out there.

Real estate investing is like learning how to hit a baseball. At first you are scared and you can’t hit anything. But the more practice swings you take, the more likely you are to hit one out of the park. So get out there and start swinging.

See if any of the following reasons real estate investors fail to act are holding you back, and take steps to correct it.

1. Fear of Failure

One of the biggest fears faced by real estate investors is the fear of failure. This is a natural response when facing risk, but the rewards of real estate investing can never be reaped unless you take action. Taking action helps you overcome fear of failure. And, if you ever do see a loss on an investment, treat it as a learning opportunity.

2. Fear of Responsibility

Investors need to be willing to take responsibility for their properties. Some people become so overwhelmed with this notion that they don’t actively purchase properties. By delegating some tasks to experts, such as building contractors or lawyers, can lessen the burden of buying and selling real estate, thereby making it less daunting.

3. Fear of Imperfection

People are imperfect by their very nature. But for some reason, real estate investors are looking for the perfect property before buying. Just as there is no such thing as a perfect person, the perfect investment property is a fantasy. Why not look for an investment that is good enough?

4. Fear of Not Finding Tenants or Buyers

Some investors worry they won’t be able to do anything with a property once they buy it. To prevent a fear of not finding a buyer or tenants, build up a network or list of prospective buyers before investing in a property. Have an exit plan.

 5. Fear of Information

It’s not from the data itself–but from the shear amount of data you need to scour when investing in real estate. Rather than letting the minutia overwhelm you, concentrate on the big picture.

6. Fear of Tax Issues

Many new real estate investors are afraid of what will happen at tax time when they factor in their investments. The best way to get over this hurdle is to hire a professional accountant to assist with taxes. This ensures that the information is sent to the IRS correctly, and it takes the burden off you, the investor.

7. Fear of Communication

Some people are uncertain of how to talk to sellers or potential buyers. This brings everything to a standstill. That’s a big mistake to make because real estate deals can quickly fall through without timely communication. Rather than delay, return calls immediately–even if you feel uncertain of what to say.

8. Fear of Repairs

Investors might feel overwhelmed by the amount of repairs a property needs. Farm out this task to a professional building contractor to get the best results and to allay your concern about repairs.

9. Fear of Legal Issues

Consult a lawyer when drawing up contracts or for any other law questions.  Lawyers are a necessary tool for your business, use them.

10. Fear of the Economy

Many investors want to wait for the perfect time in the economy before investing and are reluctant to invest in a down economy, but the economy tends to be cyclical. It is best to invest in a down economy when prices drop and sell when the economy comes back around and prices rise again.

So now it’s time for you to overcome your fears and start investing in one of the best real estate markets we’ve ever seen!

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